Employer cost in Israel at different salaries
| Salary level | Gross salary | Employer SSC | Mandatory non-tax payments | Total employer cost |
|---|---|---|---|---|
| 67% of AW | 140,523 ILS | 5.6% | 12.5% | 165,979 ILS |
| 100% of AW | 209,735 ILS | 6.3% | 9.5% | 242,861 ILS |
| 167% of AW | 350,258 ILS | 6.8% | 5.7% | 394,064 ILS |
Worked example
The OECD average wage in Israel for 2025 is 209,735 ILS (about $59,178 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 6.3%, or 13,151 ILS. On top of social security, employers must also make 9.5% in mandatory non-tax payments (mandatory pension contributions), which the OECD reports separately from taxes but which are a real cost of employment. That brings the statutory total to 242,861 ILS a year (20,238 ILS a month), or 117 ILS per hour at 2,080 hours. In 2024 the rate at the average wage was 5.8%, so it rose. The rate rises to 6.8% at 167% of the average wage.
Israel ranks #32 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Related
Frequently asked questions
How much does an employee cost in Israel?
At the OECD average wage of 209,735 ILS, about 242,861 ILS a year including 6.3% employer social security (2025).
What are employer social security contributions in Israel?
About 6.3% of gross pay at the average wage, 5.6% at 67% and 6.8% at 167% of it (OECD model).